Reference no: EM13519051

The Commonwealth Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate based on the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost, $186,000; direct materials cost, $155,000. The following transactions took place during the year (all purchases and services were acquired on account):

a. Raw materials purchased, $96,000.

b. Raw materials requisitioned for use in production (all direct materials), $88,000.

c. Utility bills incurred in the factory, $17,000.

d. Costs for salaries and wages incurred as follows:

Direct labor, $174,000

Indirect labor, $70,000

Selling and administrative salaries, $124,000

e. Maintenance costs incurred in the factory, $12,000.

f. Advertising costs incurred, $98,000.

g. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrative assets).

h. Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupiedby sales and administration).

i. Miscellaneous selling and administrative costs incurred, $12,000.

j. Manufacturing overhead cost was applied to jobs.

k. Cost of goods manufactured for the year, $480,000.

l. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacture

Required:

Prepare journal entries to record the information above. Key your entries to the letters a through l.